Root

Progressive’s September results were strong. The firm reported $0.57 in operating EPS, up 48.7% YoY, and saw a headline combined of 88.3% (down -4pts YoY).

Our research team delves deep into the latest “unicorn” IPO from InsurTech land.

The carrier is expected to garner the highest IPO valuation of any InsurTech to date, overtaking Lemonade’s $1.6bn debut price tag.

The carrier has reportedly hired Goldman Sachs to lead preparations for a listing as early as this year.

Preparations are understood to have included the retention of investment banks and discussions with investors over the move.

‘The reality is that the best drivers may sometimes have terrible credit scores, but the risk they present on the road is minimal,’ Root said.

Evercore is understood to be advising the InsurTech company on the upcoming series F round.

The stratospheric rise of Lemonade’s share price in its opening days raises the question of whether other InsurTechs will now rush to list on the public markets.

Root grew gross written premiums by 85 percent in Q1 to $144mn, according to statutory filings.

Isaac Espinoza will also be tasked with exploring possibilities of Root writing reinsurance or retro business.

Root has has been dependent on private equity and reinsurance – a source of capital in flux given the Covid-19 pandemic – to continue operating at its current growth rate.

A past industry critic of Root has shifted to a more optimistic view of the company’s future.